QUESTION 32 If marginal cost is rising average variable cost must be falling average fixed cost...

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Q32
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Option 3
the marginal product must be falling

MC=price of input/marginal product
the decrease in the marginal product increases the marginal cost.
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Q32
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Option 2

the diminishing marginal product means the marginal cost is increasing which also means the curve is upward sloping.

MC=price of input /marginal product

the diminishing marginal product means the marginal product is falling as new input is added.

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